Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0525.02 Kate Meyer x4348 HOUSE BILL 12-1154 HOUSE SPONSORSHIP Coram and Hamner, SENATE SPONSORSHIP Jahn and White, House Committees Senate Committees Appropriations A BILL FOR AN ACT Concerning a regional approach to economic development. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill tasks the Colorado office of economic development (office) with fostering a regional approach to economic development. A region is defined as a state planning and management region utilized by the department of local affairs. Currently, there are 14 such regions in the state. The office must create a new, or assist in expanding an existing, regional development partnership (partnership) in each region. A partnership consists of representatives of the region's businesses and industries, economic and workforce development entities, educational institutions, nonprofit organizations, local governmental bodies, and federal, tribal, and state regulatory authorities. The bill designates regional economic development partnership boards (partnership boards) as the entities that will develop 3-year regional economic development plans, work with partnerships to implement the plans, and provide annual progress reports regarding such implementation to the newly created state regional economic development council (council). The council, which consists of one representative from each partnership and the regional development director of the office, meets periodically with the office and the Colorado economic development commission and annually reports to the governor regarding the progress reports. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) A clear economic strategy is paramount to enhancing Colorado's competitiveness as measured by increased productivity and more effective utilization of talent, capital, and natural resources; (b) Local communities collaborating together on a regional basis are critical to building a stable and competitive state economy; (c) An effective economic strategy must include a proactive and opportunity-based approach to regional development; (d) Aligning public and private resources enhances and creates job opportunities in all regions of Colorado; (e) Developing regional economic development partnerships across the state contributes to an environment that produces sustainable economic growth and job creation; and (f) Establishing a state regional economic development council contributes to an ongoing dialogue with state agencies, the Colorado office of economic development, the governor, and the governor's cabinet. (2) The general assembly further finds and declares that regional economic development partnerships: (a) Provide an opportunity to engage in regional economic development in a consistent manner and provide meaningful information about each region's needs, barriers, and opportunities for growth; (b) Build upon the "Colorado Blueprint: A bottom-up approach to economic development", the state's document, pursuant to executive order D 2011-003, outlining a series of key tactical steps designed to foster a more competitive Colorado, by helping the state achieve the following six core objectives: (I) Build a business-friendly environment; (II) Retain, grow, and recruit companies; (III) Increase access to capital; (IV) Create and market a stronger Colorado brand; (V) Educate and train the workforce of the future; and (VI) Cultivate innovation and technology; and (c) Translate directly into tangible benefits for businesses, citizens, and educational institutions by assisting regional economic development partners with working together to reduce barriers, increase competitiveness, and expedite job growth. (3) It is therefore the intent of the general assembly to instruct and empower the Colorado office of economic development to assist regional stakeholders, as a key component of the state economic development plan, to develop or support, as appropriate, comprehensive and inclusive regional economic development partnership. Each partnership's board will work with its partnership to implement a three-year regional economic development plan that focuses on attainable actions and goals that maintain and grow, to the greatest extent possible, businesses and jobs in every region of Colorado. (4) The general assembly also declares that it is not its intent to supplant or supersede existing regional economic development partnerships. Instead, existing regional development partnerships must be involved in a manner that eliminates duplicative efforts across the state and effectively utilizes the existing infrastructure and expertise of these existing partnerships. Therefore, the Colorado office of economic development should collaborate with and assist existing regional economic development partnerships to facilitate regional economic development pursuant to this act. SECTION 2. In Colorado Revised Statutes, add article 48.7 to title 24 as follows: ARTICLE 48.7 Colorado Regional Economic Development 24-48.7-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Blueprint" means the "Colorado Blueprint: A bottom-up approach to economic development", created by the office, pursuant to executive order D 2011-003, version 1.0 of which was issued on October 18, 2011. The term includes subsequent versions. (2) "Colorado economic development commission" means the commission created in section 24-46-102. (3) "Office" means the Colorado office of economic development created in section 24-48.5-101. (4) "Region" means a planning and management region as identified by the department of local affairs. (5) "Regional development director" means an employee of the office tasked with facilitating regional development in the state. (6) "Regional economic development partner" means a stakeholder and other persons interested in the economic development of a particular region, including local businesses and industries, local and regional economic development organizations, workforce development entities, educational and academic institutions, nonprofit organizations, and local, state, tribal, and federal governmental entities. (7) "Regional economic development partnership" or "partnership" means a group comprised of regional economic development partners. (8) "Regional economic development partnership board" or "partnership board" means a body as described in section 24-48.7-103. (9) "Regional economic development plan" means a three-year regional economic development plan developed by a partnership to maintain and grow, to the greatest extent possible, businesses and jobs in every community of the region. (10) "State economic development plan" means the plan developed by the office pursuant to, and based on the framework outlined in, the blueprint. (11) "State regional economic development council" or "council" means the council created in section 24-48.7-104. 24-48.7-102. Regional economic development partnerships - composition - functions - duties of the Colorado office of economic development. (1) The office shall facilitate consistent and collaborative regional economic development in the state by assisting in the creation of new, and expansion of existing, regional economic development partnerships in each of Colorado's regions. (2) A partnership shall be inclusive and representative of all necessary stakeholders, based on the unique nature of each region, and must include, at a minimum: (a) Members representing local businesses and industries; (b) Members representing each of the region's local economic development groups; (c) Members representing the region's relevant local workforce development entities; (d) Members representing the region's relevant local educational systems and academic institutions; (e) Members representing the region's relevant nonprofit organizations; (f) Members representing local governments in the region, as appropriate for the region's size and number of constituent counties and municipalities; and (g) Members representing the region's relevant state, tribal, and federal agencies having direct impact on the infrastructure, workforce development, and economic development activities of the region. (3) (a) For a region without an existing regional economic development partnership, the office shall collaborate with regional economic development partners in the region to facilitate the creation of a partnership. The size and member partners of each new partnership shall be determined through the collaborative process facilitated by the office. (b) For a region with an existing entity that is similar to a regional economic development partnership, including a council or other organization created pursuant to state or federal funding requirements, the office shall assist in expanding the partnership as needed by identifying additional partners to increase the representativeness of the partnership, facilitating collaboration with other regions, creating or expanding a partnership board as described in section 24-48.7-103, or otherwise assisting to foster regional economic development in a manner consistent with the blueprint and the state economic development plan. (4) (a) A partnership shall convene and collaborate, in accordance with paragraph (a) of subsection (5) of this section, to identify goals for economic growth in its region. (b) A partnership may: (I) Through its partnership board, identify and apply for programs and grants to benefit the economic growth of the partnership's region; (II) Apprise its partnership board regarding grants and federal funds for the improvement and development of the partnership's region; (III) Provide input or information to its partnership board for the purpose of further developing and refining the goals and methods of the region's regional economic development plan; and (IV) Collaborate with its regional partnership board to create and implement the region's regional economic development plan. (5) (a) Beginning September 1, 2012, each regional economic development partnership shall meet, at a minimum, on a quarterly basis. (b) The regional development director of the Colorado office of economic development or the director's designee shall attend each meeting. 24-48.7-103. Regional economic development partnership boards - functions - regional economic development plans - duties of the Colorado office of economic development. (1) The office shall assist regional economic development partnerships in establishing a new, or expanding an existing, regional economic development partnership board in its region. (2) (a) Each partnership board consists of eight to twelve members, as determined by the region's partnership, who are: (I) Currently acting as a partner in the partnership; and (II) Selected by a majority of the members of the partnership to serve on the region's regional economic development partnership board. (b) A partnership board shall: (I) Be comprised of members that reasonably represent the varied interests represented in that region's partnership; and (II) Include as a member the region's representative on the state regional economic development council. (3) A partnership board shall: (a) Create a regional economic development plan that: (I) Is based on a synthesis of the goals identified by the partnership; (II) Is inclusive of existing plans, as appropriate; (III) Sets forth the tactics, deadlines, and resources necessary for achieving the identified goals; and (IV) Aligns with the concepts set forth in the blueprint; (b) Convene the partnership, as necessary, to discuss and further the goals set forth in the plan; (c) Assemble subcommittees of partnership members as needed in order to develop discrete components of the plan; (d) Engage the appropriate partners, resources, and agencies to: (I) Apply for programs, grants, and federal funds, which may be identified or proposed by the partnership, to further the goals set forth in the regional economic development plan and to benefit the economic growth of the region; (II) Expend and administer federal funds to implement the goals set forth in the plan and to improve and develop the region; and (III) Implement the region's regional economic development plan; (e) Identify and establish, if needed, a legal structure necessary for the partnership board to serve as the fiscal agent for state, federal, and other grants, if no such structure currently exists; and (f) Develop, with the input of its partnership, an annual report on the progress of the regional economic development plan and present the report to the state regional economic development council. (4) (a) Beginning September 1, 2012, each partnership board shall meet on at least a monthly basis. (b) A partnership board shall establish general policies and procedures for its operations. Members of a partnership board are not compensated for nor reimbursed for their expenses incurred in serving on the board. (c) The regional development director of the office, or his or her designee, shall attend each meeting. 24-48.7-104. State regional economic development council - creation - composition - functions. (1) There is hereby created the state regional development council. (2) The council consists of the following members: (a) One representative from each of the regional economic development partnership boards, as selected by each regional economic development partnership; and (b) The regional development director of the Colorado office of economic development. (3) For the purpose of maintaining an active dialogue between the state's regions, the council shall meet at least once per year with the Colorado economic development commission and the director of the Colorado office of economic development. (4) The council shall annually present to the governor the regional economic development plan progress reports received pursuant to section 24-48.7-103 (3) (f) and also forward the progress reports to the office, which shall include the progress reports in the state economic development plan. SECTION 3. In Colorado Revised Statutes, 24-46-104, amend (1) (c) as follows: 24-46-104. Powers and duties of commission. (1) The commission has the following powers and duties: (c) To review the economic needs of the various geographical regions of Colorado, including through consultation with the state regional economic development council created in section 24-48.7-104; SECTION 4. In Colorado Revised Statutes, 24-48.5-101, add (5.5) as follows: 24-48.5-101. Colorado office of economic development - creation. (5.5) The Colorado office of economic development shall foster a collaborative approach to regional economic development in the state, including facilitating interaction with and among regional economic development partnerships in accordance with article 48.7 of this title and providing input on how regional economic development plans developed under section 24-48.7-103 may better align with the state economic development plan. SECTION 5. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 8, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.